Inflation Falls to Lowest Rate Since February 2021

In August, the Consumer Price Index for All Urban Consumers rose 2.5% over the last 12 months, easing slightly from July’s 2.9%. While inflation is till not near the Fed’s goal of 2.0% inflation, it marks the lowest annual increase since February 2021.

The all items index rose 2.5 percent for the 12 months ending August, the smallest 12-month increase since February 2021. The all items less food and energy index rose 3.2 percent over the last 12 months. The energy index decreased 4.0 percent for the 12 months ending August. The food index increased 2.1 percent over the last year. Read the full report.

Michigan’s Unemployment Rate Matches National 

Michigan’s August 2024 monthly unemployment rate increased 0.1 percentage points to 4.5%, matching the national rate.  The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA) unemployment rate remained steady at 4.5%.

U.S. Economy Grew at a 3.0% Rate in Q2 2024

Real gross domestic product (GDP) increased at an annual rate of 3.0 percent in the second quarter of 2024, according to the “second” estimate. In the first quarter, real GDP increased 1.4 percent. The increase in the second quarter primarily reflected increases in consumer spending, private inventory investment, and business investment. Imports, which are a subtraction in the calculation of GDP, increased. Read the full BEA report.

The GDP is measured as the total market value of the goods and services produced within a specific geography during a given time period. Gross domestic product is a key indicator of the general health of the economy and its performance, with increases indicative of economic growth.

Inflation Falls to Lowest Rate Since February 2021

In August, the Consumer Price Index for All Urban Consumers rose 2.5% over the last 12 months, easing slightly from July’s 2.9%. While inflation is still not near the Fed’s goal of 2.0% inflation, it marks the lowest annual increase since February 2021.

The all items index rose 2.5 percent for the 12 months ending August, the smallest 12-month increase since February 2021. The all items less food and energy index rose 3.2 percent over the last 12 months. The energy index decreased 4.0 percent for the 12 months ending August. The food index increased 2.1 percent over the last year. Read the full report.

Consumer Sentiment Continues to Improve

According to the University of Michigan Surveys of Consumers, consumer sentiment registered at 70.1 in September 2024. According to Surveys of Consumers director, Joanne Hsu, this increase was seen across all education groups and political affiliations. Furthermore, all five index components gained, led by a 6% surge in one-year business expectations. The expectations index is now 13% above a year ago and reflects greater optimism across a broad swath of the population. While sentiment remains below its historical average in part due to frustration over high prices, consumers are fully aware that inflation has continued to slow.  Read the full report. 

 The Consumer Sentiment Index is a statistical measurement that provides an economic indicator of consumers’ opinion and optimism of the state of the economy. 

Detroit Region’s Jobs Increased in July 2024

The Detroit MSA’s monthly payroll jobs increased by 900 to 2,047,400  in June 2024. Payroll jobs is above 3,700 jobs compared to July 2019 pre-pandemic levels.

Michigan’s Labor Force Participation Slightly Decreased in August 

The August statewide labor force participation rate decreased to 62.3 percent. Michigan’s LFPR sits 0.4 percentage points below the national rate of 62.7%.

Michigan’s New Business Applications Slow in August 

New business applications decreased 19% month-over-month amounting to 9,537 in August 2024. Business applications decreased 31% compared to August 2023.

PMI® Contracted For The Fifth Consecutive Month in August

The Manufacturing PMI® registered at 47.2% in August, up 0.4 percentage points compared to July’s reading of 46.8%, according to the Institute for Supply Management® (ISM®).  According to Timothy Fiore, Chair of the Institute for Supply Management Manufacturing®, after breaking a 16-month streak of contraction by expanding in March, the manufacturing sector has contracted the last five months, but at a slower rate in August. Of the five sub indexes that directly factor into the Manufacturing PMI^®, only one (Supplier Deliveries) was in expansion territory, the same as in July.

ISM® states a reading above 50% shows that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting. The index is based on a monthly survey of supply chain managers and measures general direction of economic trends in manufacturing and other sectors.

Passenger Traffic Increases Year-over-Year

Detroit Metropolitan Airport experienced a 6.6% increase in total passengers in August 2024 totaling 3.04 million passengers compared to August 2023.